Newsletter Development Centre - October

How can African policy makers promote more productive and labor-intensive economic sectors, and at the same time exploit better the continent's large natural resource endowments? How can Africa maximize its wealth while avoiding the mistakes of the economic boom of the 70s? Over 900 officials, entrepreneurs, civil society actors and academics came together at the OECD to sketch tomorrow's African growth strategies. There was a broad consensus that levers of public action - training, investment, taxation, regulation – can be catalytic, if operated in a coordinated manner, with a more judicious selection of projects at both national and regional levels, and an active economic diplomacy keeping the interest of Africans at center-stage. They also stressed that regional co-operation, e.g. on taxation, should foster greater policy coherence. Learn more about the 12th Africa Forum.

Former Nigerian President Obasanjo helps launch new OECD Network of Foundations

Despite foundations' growing investment in and impact on development, the global policy debate rarely takes account of their knowledge and experience. The OECD Development Centre's just launched a global ''Network of Foundations Working for Development'' (netFWD) which will fill this gap, offering an innovative and informal forum for continuous policy dialogue and knowledge sharing. On 3 October, former President of Nigeria Olesegun Obasanjo gave the keynote address for the Network's launch, highlighting the timeliness of this initiative, which surfaces as foundations are emerging as pivotal players in the development arena.

At the meeting, members agreed that the value added of netFWD lies in its ability to influence the policy agenda while allowing foundations to share what works and what doesn't on issues ranging from how to support youth employment to new models of venture philanthropy. Former President Obasanjo, who has just created Olusegun Obasanjo Foundation (set up to help advancie human security for all in Africa) has become an honorary member of netFWD.

Peer Reviews on territorial cohesion policies: a tool towards a more balanced development in Latin American countries?

Territorial cohesion is an important tool for promoting equitable development. Regional and local governments' capacities should be strengthened to pursue successful regional strategies linked to a more comprehensive national development vision. At the Seminar "Policies and Instruments for Territorial Cohesion", organised by EUROSocial II (Bogotá, Colombia, 26-28 September), Latin American government representatives concluded that "peer reviews" of implemented territorial cohesion policies could be a promising tool for building regional and local capacities, through a regional policy dialogue. European and Latin American countries shared experiences and expertise on promoting territorial convergence, with the final objective of defining concrete actions EUROSocial II could undertake to support Latin American countries in their pursuit of more regionally balanced development.

The OECD Development Centre and ASEAN+3 Macroeconomic Research Office (AMRO) held their first joint Asian Regional Roundtable to discuss the Euro-area uncertainty, its implication for Asian economies and "New growth and development strategies in Asia". Although there are is large uncertainty stemming from ongoing developments in the Euro-area, the impact of the Euro-area uncertainty on Asia is limited at this stage. It affects Asia, mainly through the trade channel. In general, Asian economies show resilience. The export-oriented growth strategies, while successful in earlier decades, have shown some weaknesses. A new growth model, focused on domestic demand, is necessary for medium-term growth in the region. Strengthening structural policies to enhance productivity will be critical.

This is a follow up activity of the "OECD Strategy on Development" adopted at MCM 2012 and the regional consultation of the intermediate results of Southeast Asian Economic Outlook with Perspectives on China and India 2013.

The roundtable received around 100 senior level participants including the Asssistant Minister of Indonesia, BAPENNAS and Deputy Secretary General of Cambodia and relevant institutions.

What's next for EU-LAC relations?

Did the financial crisis usher in a new era in EU-LAC relations? Will Euro zone difficulties spillover? What impact will China have? These questions will be explored at the Seventh EU-LAC Summit next January. The economic and social context in both regions has changed significantly since the Summit was first launched in 1999. From Hamburg to Santiago, the agenda is being set as policy makers and experts, including from the EU-LAC Foundation and German Institute of Global and Area Studies, identify policy options for navigating these new conditions. Supporting SMEs and attracting high-quality investment have emerged as key issues for the regions' development. Governments will seek to identify best practices in both areas, such as the OECD Guidelines for Multinational Enterprises.

Best practices to promote internet in Africa

The OECD Development Centre and the African Union (AU) came together at the 4th AU Ministerial Meeting in Sudan in 2012 to present best practices to promote the Internet in Africa which were endorsed by AU delegates, building on preliminary findings from earlier work. Both institutions are bringing light on the conditions under which policy makers can apply regulations in broadband networks given African specificities. Participants agreed that Open Access requires both adequate regulation and healthy competition in the market. Moctar Yedaly, Head of the Posts & Telecommunications Division at the African Union Commission, highlighted the importance of taking concerted action now to ensure fair access to the new infrastructure that private and public actors are deploying.

Did you know?

… that annual philanthropic contributions for international aid projects were estimated to be between USD 4.5 billion and USD 8 billion in 2009. This corresponds to 4 to 7% of the amount provided by official aid donors the same year (USD 119.6 billion).

… 1 in 2 Nigerians, Africa's most populous nation, is younger than 25 years.